CRS - TARP Assistance for Chrysler: Restructuring and Repayment Issues
TARP Assistance for Chrysler: Restructuring and Repayment Issues, Baird Webel, Specialist in Financial Economics - Bill Canis, Specialist in Industrial Organization and Business, September 7, 2012"The recent recession and accompanying credit crisis posed severe challenges for all automakers, but especially for General Motors and Chrysler. Executives of both companies testified before congressional committees in the fall of 2008 requesting federal bridge loans. Legislation that would have provided such financial assistance passed the House of Representatives but did not pass the Senate. In lieu of that assistance, the Bush Administration turned to the Troubled Asset Relief Program (TARP), a $700 billion program that was enacted in October 2008 to shore up the financial system and prevent spillover to the broader economy."